Kennametal Inc (KMT)
Payables turnover
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,368,777 | 1,372,806 | 1,408,190 | 1,426,892 | 1,425,531 | 1,425,287 | 1,427,991 | 1,426,499 | 1,431,745 | 1,417,541 | 1,397,058 | 1,376,545 | 1,364,480 | 1,344,386 | 1,331,230 | 1,316,490 | 1,288,963 | 1,226,292 | 1,217,875 | 1,271,959 |
| Payables | US$ in thousands | 195,929 | 192,923 | 198,512 | 201,908 | 191,541 | 192,769 | 193,002 | 197,369 | 203,341 | 197,158 | 206,722 | 205,940 | 227,887 | 197,687 | 185,857 | 177,077 | 177,659 | 164,481 | 127,863 | 136,076 |
| Payables turnover | 6.99 | 7.12 | 7.09 | 7.07 | 7.44 | 7.39 | 7.40 | 7.23 | 7.04 | 7.19 | 6.76 | 6.68 | 5.99 | 6.80 | 7.16 | 7.43 | 7.26 | 7.46 | 9.52 | 9.35 |
June 30, 2025 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,368,777K ÷ $195,929K
= 6.99
The payables turnover ratio for Kennametal Inc exhibits notable fluctuations over the analyzed period from September 2020 to June 2025. Initially, the ratio was relatively high at 9.35 as of September 30, 2020, indicating a swift payment cycle to accounts payable and potentially strong supplier relations or shorter payment terms. The ratio experienced a slight increase to 9.52 by December 2020, before declining significantly to 7.46 in March 2021 and further dropping to 7.26 by June 2021. This downward trend suggests a lengthening of the payment period to suppliers during this period.
Between September 2021 and June 2022, the ratio continued to decrease, reaching a low of 5.99 in June 2022, signaling that the company was taking longer to pay its suppliers relative to the earlier periods. This lengthening could reflect strategic management of working capital, shifts in supplier payment policies, or cash flow considerations.
Following the June 2022 low, the ratio gradually recovered to 6.68 by September 2022, indicating a modest shortening in payment periods, and then stabilized around 6.76 in December 2022 and slightly increased to 7.19 in March 2023. From March 2023 onward, a gradual upward trend is observed, reaching 7.44 by June 2024, before slight fluctuations around 7.07 to 7.12 in subsequent periods up to June 2025.
Overall, the payables turnover ratio demonstrates a trend of initial stability, followed by a significant reduction in the payment frequency relative to earlier periods, and eventual partial recovery. These dynamics reflect possible changes in the company's payment strategies, supplier relationships, or working capital management practices over the analyzed timeframe.